Introduction to Cost Accounting Quiz
3 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the formula for calculating prime cost?

  • $ ext{Prime cost} = ext{Direct materials} + ext{Direct labor} + ext{Direct expenses}$ (correct)
  • $ ext{Prime cost} = ext{Direct materials} + ext{Indirect labor} + ext{Factory rent}$
  • $ ext{Prime cost} = ext{Direct materials} + ext{Indirect labor} + ext{Indirect expenses}$
  • $ ext{Prime cost} = ext{Direct labor} + ext{Indirect materials} + ext{Direct expenses}$

    • What is the formula for calculating factory cost?

  • $ ext{Factory cost} = ext{Prime cost} imes ext{Factory overheads}$
  • $ ext{Factory cost} = ext{Prime cost} - ext{Factory overheads}$
  • $ ext{Factory cost} = ext{Prime cost} imes ext{Direct expenses}$
  • $ ext{Factory cost} = ext{Prime cost} + ext{Factory overheads}$ (correct)

    • What is the formula for calculating total cost?

  • $ ext{Total cost} = ext{Prime cost} + ext{Factory cost} + ext{Indirect labor}$
  • $ ext{Total cost} = ext{Prime cost} + ext{Factory cost} + ext{Administrative overheads}$ (correct)
  • $ ext{Total cost} = ext{Prime cost} + ext{Factory cost} + ext{Selling expenses}$
  • $ ext{Total cost} = ext{Prime cost} + ext{Factory cost} + ext{Indirect materials}$

    • More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser